Overseas Income & Australian Mortgages

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Overseas Income & Australian Mortgages
Topic Started: Aug 15 2009, 06:58 AM (80 Views)
PC Pom	Aug 15 2009, 06:58 AM Post #1
Anyone for tennis? Posts: 654 Group: Admin Member #1 Joined: March 23, 2006	Here's a little piece of information that may be invaluable to people who earn a crust (or part of) from being a co. director or partner in an overseas business yet live in Australia. I'm speaking from personal experience. I'm a partner in two businesses that are based in the UK. I live in Australia. As such I pay UK tax on UK earnings as part of the double tax agreement between the UK and Australia. I do not pay Australian tax on the UK earnings. However, I do have to have two accountants, one in the UK and one in Australia. The Australian one has to take note that I have paid all UK tax on my UK earnings. So far so simple. Recently I've been off the boil because I've been up to my neck in work and also in the purchase of an investment property. The necessitates a new mortgage and it became apparent that not all lenders will acknowledge overseas income. Some don't even know they don't - as we found out recently when we applied to go with Bank West. It was a long drawn out re-mortgage to be and at the last minute Bank West pulled the plug on us because my overseas income couldn't be counted, only my Australian income. They should have informed us of this much earlier in the consultation stage but didn't. Bit naughty, and it also could have cost us the house because we had too inform the sellers of the property that we couldn't get finance. Well, couldn't get finance through Bank West. So we spoke to a broker and they explained that only the big lenders these days will be in a position to help those with overseas income not subject to Australian tax. You'd think Bank West would be a big lender but there you go. So now we're trying Westpac and they've said that my income can be counted but it's a little more time consuming. In the end we're just going to simplify life by basing the new mortgage on our Australian taxed income - yes, Westpac will let us do this. No hard feelings either way. But perhaps important info for those looking to move over here and still retaining some sort of stake in an overseas business. P.
	Koala Konnection UK to Australia and New Zealand. Migration Made Easy.


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